Despite the weak economy, demand for trailers and other commercial vehicles remains high. The surge in demand is partly due to the loss of production from 2020 to 2022 and the continued changes in distribution strategies stimulated by e-commerce. "

Cargo trailer is an energy-saving vehicle used to transport goods and loads from one place to another. These vehicles help hauling goods and products in warehouses, distribution centers, industry and many other places.

With the rapid recovery of the global transportation industry and the increase in the number of distribution centers and warehouses around the world, the freight trailer industry is growing steadily. According to the regression analysis model, the compound annual growth rate (CAGR) for the period 2022-2027 is expected to be 7.9 per cent.

Trailer orders have surged since July, with U.S. manufacturing output rising 2.4 percent year-on-year in October, 0.1 percent higher than in September, the is understood. U.S. trailer orders rose 159 percent from 17,000 in July, compared with 44,000 in October. That compares with a 100 percent increase from July to October 2021. "

freight volumes fell month-on-month at the end of 2022, the American Trucking Association Rental Truck Tonnage Index fell 2.3 percent in October from the previous month. However, compared with the same period last year, freight demand is still 2.8 percent higher than in October 2021. "

A significant increase in trailer numbers can translate into a more efficient supply chain, which allows manufacturers to increase production of finished goods, not only to meet any new demand, but also to meet 2021 and 2022 unmet pent-up demand.

At the same time, market factors are driving: the recovery of global transportation and e-commerce, and the trend of automation. Global trade in commercial and industrial goods is growing, which in turn is driving global demand for transportation and storage facilities. The increase in automation is mainly through advanced equipment and technology in multiple industries to increase productivity, which has become a common practice worldwide. Automation technology is becoming increasingly popular to reduce labor costs, improve logistics and efficiency.

trailer maker Wabash National expects demand for trailers to remain strong even if the U.S. economy shrinks in 2023. The manufacturer's trailer shipments in 2021 increased by 24% compared to 2020, but the 45,365 new trailers in 2021 are still 17% lower than in 2019. "

goods used to move from manufacturers to distribution centers to stores has evolved from manufacturers to distribution centers to home delivery centers to homes. I believe the transportation industry will find the best way to transport these intermediate profit points, Wabash National Chief Financial Officer Michael Pettit said.

"The sustainable long-term demand drivers of e-commerce driving logistics change will require more trailers for many years to come." Pettit added.

Forwardernet.com